The Risk Management Spectrum

Running head: THE RISK MANAGEMENT SPECTRUM
The Risk Management Spectrum
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1THE RISK MANAGEMENT SPECTRUM
Executive Summary
Risk in a business is associated with every phase of the successful work structure of a
business process. A risk can be described as the associated perils in a business that is totally
uncalled for but a business can still be prepared for the risks and also can strategize to
eliminate them before they even appear to cause negative impacts on the business processes.
There is a strong relationship between risk and the strategies to mitigate the risks. The way
risk, strategy and adaptation can be defined would help in establishing a clear relationship
between the three elements in a business structure. However, this is also an obvious effect
that business organizations need to identify these three before, during and even after the
propagation of a business process and needs to clarify how a problem to a business
organization can be easily mitigated with the implementation of a proper strategy that would
help in identifying the way by which the strategies can be easily adapted within the business
process. Therefore, the following report is based upon the understanding of risk, strategy and
adaptation and how the understanding of the risk management spectrum is formulated with
the understanding of the risk substrate.

2THE RISK MANAGEMENT SPECTRUM
Table of Contents
Introduction................................................................................................................................3
The relationship between risk, strategy and adaptation.........................................................3
Meaning of adaptation for an organization............................................................................4
Importance of adaptation in an organization..........................................................................5
Examples of adaptation in businesses....................................................................................6
Risks involved and confrontation.......................................................................................8
Formulation of strategies to address these risks.................................................................8
Adapting the risk to execute the strategies successfully....................................................9
Reasons of the business being successful in the end..........................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

3THE RISK MANAGEMENT SPECTRUM
Introduction
Any organisation is a potential effacing losses due to uncertain issues. In literary term,
the word risk is defined as a situation that exposes to a prospectus danger (Mullan et al.
2015). In case of organisations and business as well, risk is a potential of danger that the
organisations can face often due to uncertain situations (Pauw 2015). Strategy on the other
hand, can be defined as a plan of action that is designed for achieving and overall aim or a
long term goal (Schlosberg, Collins and Niemeyer 2017). This is a high level plan figured out
to fulfil one or more than one goals through the conditions of uncertainty. The process of
adaptation, can be defined as a process through which a new procedure, environment, action
is brought about in an environment where it was not implemented before.
The relationship between risk, strategy and adaptation
In literary terms the words risk, strategy and adaptation are different from each other
but all these three terms have a strong relationship between them. Mostly it has been found
that be it an organisation, a military area for the government, there are innumerable chances
of facing a risk on a risky situation that was uncalled for (Saebi, Lien and Foss 2017). A risk
spectrum is fulfilled by the identification of the risk situation before it occurs within the
organization and applying risk mitigating strategies with the help of the identification of the
severity of the risk factor. Every risk is associated with a negative impact that has the
potential of destroying or disintegrating whatever it is related to. Just like a risk in a business
scenario has the potential of destroying the business, in the same way, business organisation
can also face unknown situations that can exert risk factors in the already existing business
environment (Linnerooth-Bayer and Mechler 2015). There might be a need of changing the
business strategy to avoid the risk. When a business identifies the possible strategy to avoid
the risk, they need to implement it within the business organisation and adapted to replace the